Article

Digital Risk: Creating confidence at the edge of possibility

Retail

How is digitisation impacting the Retail sector?

The race for competitive edge has never been fiercer, innovation and resilience never more essential to success. Pursuing advantage means boldly acknowledging risk and going confidently forward - leaning into new possibilities undaunted by scale or complexity. Leading organisations know that people, processes and technology combine to continually reshape the frontiers of possibility – from the adoption of cloud, the shift to remote working, automation and artificial intelligence.

We can create the confidence to marshal these possibilities to action and help the leaders driving digital transformation create sustainable value. To find out what we can do to help you visit our Digital Risk hub and explore our framework, or contact us as below. 

Responding to the risks that digital brings

Thriving in the new normal requires adapting to new technologies to stay competitively relevant while mitigating the risks to the business.

Safe and ethical implementation of artificial intelligence and machine learning
Create the confidence and understanding to successfully embrace radical and dynamic new decision support systems in order to explore new frontiers in value creation
  Risk conduct, regulation and culture in the digital world
Lean into the possibilities of digital while confidently controlling the risks created by having a closer relationships with the consumer
Transforming digitally with confidence
Step forward into possibility, while being prepared for the unknown
  Controlling disruptive technologies, cloud, data and agile ecosystems
Create positive change through controlled revolution; protect BAU activity whilst embracing disruption
Digitisation of risk, compliance and control management
Transform effectively and safely by embracing digital strategies for managing digital risks
 

Consider: How do these digital risks impact you?

Organisations should build the digital confidence required to thrive in the “digital world”

Board
Are we getting the right level of information about the digital change happening in the business?
  CIO
How can I confidently embrace new technologies and mitigate the risks of digital to allow for a more confident and effective business?
CMO
Am I able to harness the technologies and innovations that get the business closer to the customer and set us apart from the competition?
  CTO
How can I build the trust in digital that’s necessary to overcome transformation fears and realise transformation success?
CISO
How can I help the business embrace digital, build safe and secure solutions by embedding risk management and security throughout the innovation and development cycle?
     

Retail Business: 2021 Digital Risk trends

Shift to E-Commerce

Trends

Reliance on digital infrastructure to promote and sell goods and interact with customers has been accelerated due to COVID-19, requiring appropriate preparation and deployment

Risks

  • Failure to deliver an optimise an omni-channel experience
  • Fundamental shift in business and operating models
  • Failure to successfully and securely integrate third parties and customers into supply chain
  • Poor customer engagement and responsiveness

Questions

  • Omni-Channel: How do you optimise the omni-channel experience and access to customers whilst minimising business risk?
  • Customers: How do you maintain a positive, virtual relationship with customers? Are your customer journeys inclusive? Do you know your customers, their needs, and how to interact? Are you responsive to customer feedback and experience?

Scaling Robotic Process Automation (RPA) & AI

Trends

Automation is being scaled to run tasks independently or semi-autonomously to optimise production, performance and customer experience

Risks

  • High costs of implementation (human and monetary) 
  • Cyber and service risks posed via access to and automation of systems 
  • Productivity loss through automation malfunction 
  • Third-party retail bots depleting supply for reselling and financial profiteering 

Questions

  • Strategy: What is your strategy for implementing intelligent automation at scale? 
  • Governance: What is the governance model for automation and AI? How do you track performance? Are your current governance controls fit for purpose? 
  • Security: How do you ensure that automation and artificial intelligence are safely implemented into your environment. 
  • Data: How do you ensure that data, especially customer data is secure and in line with privacy regimes across the world? 

Migrating to the cloud

Trends

Companies are adopting a cloud-first strategy and migrating legacy systems to the cloud, improving business operations, security and consistency

Risks

  • Costs of implementation and upkeep
  • Cyber risk of systems being managed online and the damage that could be posed by any breach
  • Data risk and loss through migration and storage
  • Lack of cloud strategy and migration plan
  • Limited data and infrastructure visibility, control and security

Questions

  • Security: How do you manage access and protect against risk currently? How will you adjust this infrastructure in the cloud?
  • Data: What is your current architecture? How scalable / flexible is your landscape? How do you secure & protect against data loss?
  • Governance: How will you encourage organisation buy-in? Can you control the speed and extent of your Cloud transformation? Where does responsibility end?
  • Control: How do you secure data and ensure regulatory compliance? Do you have oversight of your global landscape (costs/digital)?

Business & Supply Chain Resilience

Trends

As organisations adjust ways of working, largely due to the pressure of COVID-19, business continuity, resilience and disaster recovery require new and prioritised thinking to enhance, digitise and protect operations

Risks

  • Accumulating control and technical debt due to the fast pace of implementation of new digital tools
  • Increase cyber and business risk exposure 
  • Changing risk landscape due to a shift in working patterns 
  • Compromising of data privacy and confidentiality 

Questions

  • Tools & Technology: How to fast-track implementation & adoption whilst remaining in control? 
  • Security: How do you ensure security is embedded as part of any digital transformation efforts? 
  • Privacy: How do you implement privacy by design?
  • Governance: How do you need to adapt existing governance processes for the new reality? 

Digital Core

Trends

Delivering exceptional customer service depends on robust, digitised back-office and operational processes that are adaptive and responsive co changing business and customer needs 

Risks

  • Legacy infrastructure and software failing to support current business needs  
  • Back-office processes unable to cope with increasing internal and external demand  
  • Unrealised benefits from process improvement initiatives 

Questions

  • Buy-in: How to drive a fundamental mind-set change through digital transformation? How do you maximise technology adoption and minimise cultural resistance?
  • Support: How do you support employees and customers in new environment?
  • Competitiveness: How do you balance change, consistency and security? 

Did you find this useful?